Vista Gold Corp. (NYSEAM:VGZ) (TSX:VGZ) is transforming its approach to developing the Mount Todd gold project in Australia, one of the world’s largest undeveloped gold resources with over 9 million ounces. The company is shifting from an ambitious large-scale operation to a more financially viable smaller project that better aligns with current market realities.
The original development plan called for a 50,000 tons per day operation with capital expenditure requirements of approximately $1 billion. The revised strategy reduces the scale to 15,000 tons per day with a targeted capital requirement of under $400 million—a 60 per cent reduction in upfront investment costs.
“For years we talked about Mount Todd as this big project… but a billion dollars US is still a big cheque to write,” explained Fred Earnest, President and CEO of Vista Gold, in a recent interview at the PDAC convention.
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(Top image: Mt. Todd Gold Mine via Vista Gold Corp.)
